{"id":240417,"date":"2026-03-28T05:12:18","date_gmt":"2026-03-28T05:12:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/240417\/"},"modified":"2026-03-28T05:12:18","modified_gmt":"2026-03-28T05:12:18","slug":"la-school-district-employee-tech-firm-owner-accused-in-22m-pay-to-play-scheme","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/240417\/","title":{"rendered":"LA school district employee, tech firm owner accused in $22M pay-to-play scheme"},"content":{"rendered":"\n<p>NEWYou can now listen to Fox News articles!\n  <\/p>\n<p class=\"speakable\">A former <a href=\"https:\/\/www.foxnews.com\/category\/us\/los-angeles\" target=\"_blank\" rel=\"noopener nofollow\">Los Angeles<\/a> Unified School District (LAUSD) IT employee and a tech company owner are facing felony charges in what prosecutors describe as one of the &#8220;largest&#8221; alleged money laundering schemes in the district&#8217;s history.<\/p>\n<p class=\"speakable\">Hong &#8220;Grace&#8221; Peng, a former LAUSD technical project manager, and Gautham Sampath, owner of the tech firm Innive, are accused of orchestrating a years-long &#8220;pay-to-play&#8221; scheme that allegedly steered more than $22 million in school district contracts to Sampath\u2019s company.<\/p>\n<p>&#8220;This case involves a blatant abuse of <a href=\"https:\/\/www.foxnews.com\/category\/corruption\" target=\"_blank\" rel=\"noopener nofollow\">public trust<\/a> \u2014 funneling taxpayer dollars intended for students into personal coffers,&#8221; Los Angeles County District Attorney Nathan Hochman said in a statement.\u00a0<\/p>\n<p>&#8220;This vendor, working with an LAUSD project manager, allegedly carried out a multi-year, multi-contract pay-to-play arrangement that siphoned millions of dollars from our schools.&#8221;<\/p>\n<p><a href=\"https:\/\/www.foxnews.com\/politics\/dem-la-councilman-stand-trial-felony-corruption-charges-judge-rules\" target=\"_blank\" rel=\"noopener nofollow\">DEM LA COUNCILMAN TO STAND TRIAL ON FELONY CORRUPTION CHARGES, JUDGE RULES<\/a><\/p>\n<p> <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/03\/lausd-headquarters.jpg\" alt=\"FBI Conducts Search At Los Angeles Unified School District Offices\" width=\"1200\" height=\"675\"\/> <\/p>\n<p>Los Angeles Unified School District headquarters in downtown LA. (Justin Sullivan\/Getty Images)<\/p>\n<p>According to prosecutors, Peng played a role in awarding contracts tied to LAUSD\u2019s My Integrated Student Information System (MiSiS) between 2018 and 2022.\u00a0<\/p>\n<p>Authorities allege those contracts \u2014 totaling $22 million \u2014 were largely directed to Innive.<\/p>\n<p>Investigators say Sampath then funneled more than $3 million back to Peng through intermediaries.<\/p>\n<p>Prosecutors say messages between the two show discussions about deleting chats, securing contracts and moving money.<\/p>\n<p>Peng, a Pasadena resident, was charged with <a href=\"https:\/\/www.foxnews.com\/category\/crime\" target=\"_blank\" rel=\"noopener nofollow\">felony counts<\/a> of money laundering and illegally holding a financial interest in government contracts.<\/p>\n<p><a href=\"https:\/\/www.foxnews.com\/us\/los-angeles-hospice-fraud-reaches-billions-medicare-providers-scam-federal-system-fake-companies\" target=\"_blank\" rel=\"noopener nofollow\">LOS ANGELES HOSPICE FRAUD REACHES BILLIONS AS MEDICARE PROVIDERS SCAM FEDERAL SYSTEM WITH FAKE COMPANIES<\/a><\/p>\n<p>Sampath, of Flower Mound, Texas, faces similar charges, along with an additional count of aiding and abetting a public official.<\/p>\n<p>An arrest warrant has been issued for Peng, while Sampath faces <a href=\"https:\/\/www.foxnews.com\/category\/us\/us-regions\/west\/california\" target=\"_blank\" rel=\"noopener nofollow\">extradition to California<\/a>. Court dates have not yet been set.<\/p>\n<p>Peng resigned from LAUSD in late 2022 after investigators <a href=\"https:\/\/www.foxnews.com\/us\/fbi-raids-home-offices-major-los-angeles-school-district-superintendent\" target=\"_blank\" rel=\"noopener nofollow\">executed search warrants<\/a> at her home and workplace.\u00a0<\/p>\n<p>Authorities say Sampath and his company continue to hold government contracts in California and nationwide.<\/p>\n<p>If convicted, both defendants could face up to seven years in county jail.<\/p>\n<p><a href=\"https:\/\/www.foxnews.com\/us\/former-gavin-newsom-chief-staff-charged-225k-fraud-corruption-scheme-doj-says\" target=\"_blank\" rel=\"noopener nofollow\">FORMER GAVIN NEWSOM CHIEF OF STAFF CHARGED IN $225K FRAUD AND CORRUPTION SCHEME, DOJ SAYS<\/a><\/p>\n<p> <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/03\/rob-reiner-nick-murder-stabbing-los-angeles-district-attorney-nathan-hochman-003.jpg\" alt=\"LA DA Nathan Hochman talks about the Rob Reiner stabbing case\" width=\"1200\" height=\"675\"\/> <\/p>\n<p>Los Angeles County District Attorney Nathan Hochman called the case &#8220;a blatant abuse of public trust.&#8221; (Derek Shook for Fox News Digital)<\/p>\n<p>&#8220;We will not tolerate public officials who sell out their responsibilities or contractors who line their pockets by gaming the system,&#8221; Hochman added. &#8220;Both will be held fully accountable.&#8221;<\/p>\n<p>In a statement, LAUSD said it was aware of the charges against Peng.<\/p>\n<p><a href=\"https:\/\/foxnews.onelink.me\/xLDS?pid=AppArticleLink&amp;af_dp=foxnewsaf%3A%2F%2F&amp;af_web_dp=https%3A%2F%2Fwww.foxnews.com%2Fapps-products\" target=\"_blank\" rel=\"noopener nofollow\">CLICK HERE TO DOWNLOAD THE FOX NEWS APP<\/a><\/p>\n<p>&#8220;LAUSD is committed to full compliance with all applicable laws, and we expect our employees and business partners to comply with the highest standards of ethics and integrity,&#8221; the school district said in a statement. &#8220;The district will continue to cooperate fully with relevant authorities.&#8221;<\/p>\n<p>Innive did not immediately respond to Fox News Digital&#8217;s request for comment.<\/p>\n<p>Sophia Compton is a Writer at Fox News Digital. Sophia was previously a business reporter covering finance, energy and tourism and has experience as a TV news producer. She graduated with a journalism degree in 2021 from the University of Hawaii at Manoa. Story tips can be sent to sophia.compton@fox.com.<\/p>\n","protected":false},"excerpt":{"rendered":"NEWYou can now listen to Fox News articles! A former Los Angeles Unified School District (LAUSD) IT employee&hellip;\n","protected":false},"author":2,"featured_media":240418,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[7,3431,15,48,52,51,47,50,49,10625,1181],"class_list":{"0":"post-240417","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-los-angeles","8":"tag-california","9":"tag-crime-world","10":"tag-education","11":"tag-la","12":"tag-la-headlines","13":"tag-la-news","14":"tag-los-angeles","15":"tag-los-angeles-headlines","16":"tag-los-angeles-news","17":"tag-police-and-law-enforcement","18":"tag-us"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/240417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=240417"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/240417\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/240418"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=240417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=240417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=240417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}